What are intangible assets?
- By Book Keeping Pros
- Sources checked 15 Oct 2026
Definition
Intangible assets are things of value a business owns that have no physical form, such as goodwill, brand names, registered trade marks, designs, copyright and other intellectual property. Like equipment and stock, they are assets of the business, but they cannot be touched, and putting a figure on them is usually harder.
What sets an intangible asset apart is that it has no physical substance. A delivery van, a shelf of stock and the office computers are tangible. A registered trade mark, the rights to a product design or a customer list bought along with another business are intangible.
Not everything you cannot touch counts. Money in the bank and amounts customers owe have no physical form either, but in the accounts they are cash and receivables, which are current assets, not intangible assets.
When a business pays for an intangible asset, the purchase often goes to its own asset account rather than being recorded as an everyday expense. Whether a particular payment belongs there, how it is treated in the accounts, and whether anything the business has built up itself should appear in the books are questions for your accountant.
In Australia
business.gov.au's glossary describes intangible assets as non-physical assets with no fixed value, giving goodwill and intellectual property rights as examples.
Its guide to valuing a business asks owners to count both kinds of asset: tangible ones you can physically handle, like tools, equipment and property, and intangible ones, like intellectual property, brands and goodwill. It lists details of goodwill and intellectual property among the information to prepare, and says that because assessing what assets are worth can be complicated, it is a good idea to ask your business adviser or your accountant for help.
Worked example
| Asset | Physical form | Type |
|---|---|---|
| Delivery van | Yes | Fixed asset |
| Stock held for sale | Yes | Current asset |
| Registered trade mark | No | Intangible asset |
| Customer list bought with a business | No | Intangible asset |
| Rights to a product design | No | Intangible asset |
| Money owed by customers | No | Current asset |
Illustrative example only: these rows show the method and are not sourced data.
Common mistakes
- Listing money in the bank or customer debts as intangible assets because they have no physical form.
- Deciding alone how to record a large payment for a trade mark, a licence or another business's goodwill, instead of asking your accountant.
- Keeping no copies of the documents that show the business owns its intangible assets, such as trade mark registrations or purchase contracts.
Related terms
Related service
Small business bookkeeping
Your books kept current, every month.
Sources
- Key financial terms
business.gov.au, Australian Government. Current at 15 October 2026, released 9 July 2024. Checked 15 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.
- Value your business
business.gov.au, Australian Government. Current at 16 October 2026, released 11 July 2024. Checked 16 October 2026.
© Commonwealth of Australia 2020, licensed under CC BY 3.0 AU. Licence: CC BY 3.0 AU.